Stock traders often have to determine whether they prefer to invest in stocks with a strong upward momentum or stocks that are value plays with appealing fundamentals. Fortunately, by doing a little digging, sometimes investors don’t have to choose.
Life insurance stocks have been on fire in 2014, but solid underlying business performance means that some of these insurers still have reasonable valuations even after big run-ups in share price.
MetLife Inc
MetLife shares are up 7.3 percent this year, and the stock is so close to all-time highs that shareholders can almost taste it. However, MetLife’s fundamentals would still look pretty appealing to a value investor. MetLife’s forward price to earnings ratio (P/E) is currently sitting in the single digits at 9.3. The stock’s price to tangible book value (P/TBV) is hovering right around 1.0.
The stock has had strong upward momentum since mid-2012, but this year it has struggled to break out to new highs above the $56 level. With the company’s solid valuation numbers, a strong technical breakout above $56 could be the recipe for…
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